NB Financial Health.

Sixty-two percent of the world’s adult population now has access to a bank account. But in spite of this progress, gender gaps in digital and overall financial inclusion are increasing, and there's a growing awareness that access alone doesn't equal empowerment. Madji Sock and Katrina Kwan of Dalberg Advisors discuss strategies to close this growing gap and ensure that women are not left behind by the digital revolution in financial services.

More than 2 million domestic workers in Mexico go unseen by the formal financial system – they don't pay into a pension or social security system, and remain unbanked and badly underserved. Mexican fintech startup 4UNO is serving this hard-to-reach segment with an innovative banking and insurance product delivered through their employers. BFA's Gabriela Zapata explains how 4UNO is avoiding the pitfalls traditional financial institutions have faced in working with low-income clients.

The classic tech-meets-tradition narrative often portrays fintechs and established financial institutions as natural adversaries. But research from the Center for Financial Inclusion (CFI) and the Institute of International Finance found quite the opposite to be true. CFI's Sonja E. Kelly explores the report's findings, which detail the surprising scope for collaboration among these players – and the potential impact on low-income customers.

Imagine if every time you picked up your paycheck, you had to navigate a long and dangerous ride, deal with endless lines and cash shortages at the bank, and pay expensive fees and bribes – a process that cost you several work days and up to 15 percent of your salary. That used to be the situation facing health and education workers in Liberia, but the government’s innovative use of mobile money has turned things around. Erica Bustinza of FHI 360 oversees the program that made this possible, and she discusses its impact.

Digital financial services are proliferating across the developing world, yet providers are having trouble coming up with products that meet low-income customers where they live. For instance, for a rural customer, how can a stagnant digital savings account compete with a productive egg-laying hen? Maha Khan and Annabel Schiff, representing the newly formed Mastercard Foundation Partnership for Finance in a Digital Africa, unveil new research exploring how digital financial services can meet people's needs alongside more traditional services.

When Experian was hacked last fall, the breach exposed the social security numbers of 143 million people in the U.S. Shortly thereafter, in South Africa, approximately 30 million citizens' identity numbers and financial information were hacked and leaked on the internet. As more people in emerging economies are equipped with personal identification numbers for digital financial services, the need for securing sensitive data grows exponentially. Suresh Rajagopalan of FSS touts tokenization as a remedy – and outlines some challenges it presents.

For millions of people, especially for the 13.2 million who have worked with the organization to build new or updated homes, Habitat for Humanity is a household name. But many don't realize that the international charity that put “sweat equity” on the map is also pioneering a different approach: A pair of funds that invest in businesses that advance affordable housing via financial products and services. Jyoti Patel, global director-capital markets at Habitat’s Terwilliger Center for Innovation in Shelter, discusses the funds and their wide-ranging impact.

You are probably bombarded with offers for useless products on a daily basis, with little consequence other than mild annoyance. But what if you were living at the BoP and the product being offered were at best useless, and at worst likely to undermine your economic future? That's the case for many financial services clients in emerging markets, says Barbara Magnoni of EA Consultants. She explores responsible sales tactics that providers can use to avoid doing more harm than good.

About this Blog

NextBillion Financial Health is a blog and news resource dedicated to improving financial access for low-income people around the world, and to helping them use financial services to improve their lives and livelihoods.

The site, sponsored by MetLife Foundation, focuses on the businesses, issues and innovations that are making an impact on financial health worldwide. It brings together a diverse collection of experts and practitioners, who share their knowledge, research and experiences in helping low-income people benefit from access to financial tools.

NextBillion Financial Health provides a platform for discussion and debate, and for sharing fresh approaches and unconventional thinking. It also features job listings, news articles and events that are important to financial inclusion professionals.

Some of the topics featured on the site include:

Technology: New innovations that harness mobile devices, mobile applications, and other technology to expand and deliver financial services and enable people to build financial capability

Innovations and knowledge: New products and emerging research focused on improving the financial health and capability of underserved customers, regardless of geography

Business innovators: From startups to large banks, profiling some of the innovators who are deploying new financial products to serve low-income customers

Discussion/Debate: Diverse points of view on the effectiveness of different private enterprise, government/aid agency and public policy efforts to improve financial inclusion and health

James Militzer, NextBillion’s senior editor, is the contact person for the new site. He can be reached via email: jamesmil@umich.edu.